Are any oral or written promises outside of the Bevaris Alliance Franchise Agreement binding?
Bevaris_Alliance Franchise · 2024 FDDAnswer from 2024 FDD Document
| Provision | Section in Franchise Agreement | Summary |
|---|---|---|
| which must be approved by us. | ||
| l. Bevaris approval of transfer | Section | We have the right to approve all transfers, which shall be |
| by franchisee | 16.11 | subject to the provisions of the Franchise Agreement. |
| m. Conditions for Bevaris approval of transfer | Section 16.11 | Transferee approved by us, transfer fee paid, transferee not competitor, your account is current, you sign a release, transferee signs all documents, lender consents, and subordination agreements. |
| n. Bevaris’ right of first refusal to acquire franchisee’s business | Section 16.3 | Bevaris can match any offer for the purchase of Your franchise at Bevaris’ option. |
| o. Bevaris’ option to purchase Your business | Section 16.7 | Upon transfer, fair market value (but no value for goodwill), legal compliance, no assumption of your liabilities. |
| p. Death or disability of | Section 17 | Franchise may be assigned by estate to approve transferee |
| franchisee | in three months. | |
| q. Non-competition covenants during the term of the franchise | Section 20.1 | You are prohibited from operating or having an interest in a similar business. |
| r. Non-competition covenants | Section 20.1 | You are prohibited for 24 months from expiration or |
| after the franchise is | termination of the franchise from having a connection | |
| terminated or expires | with a competing business. | |
| s. Modification of the agreement | Not Applicable. | No modifications generally, but the Bevaris Alliance Manual is subject to change. Renewal or extension may subject franchisee to additional restrictions. |
| t. Integration/merger clause | Section 27.4 | Only the terms of the Franchise Agreement are binding. Any other oral or written promises are not enforceable; including anything set forth in this Disclosure Document. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 17–18)
What This Means (2024 FDD)
According to Bevaris Alliance's 2024 Franchise Disclosure Document, the franchise agreement contains an integration clause. This means that only the terms written within the Franchise Agreement are legally binding on both Bevaris Alliance and the franchisee.
The FDD explicitly states that any other promises or representations, whether spoken or written, are not enforceable. This includes anything that might be mentioned in the Disclosure Document itself but is not reiterated in the Franchise Agreement.
This provision protects Bevaris Alliance from claims based on informal promises or understandings. For a prospective franchisee, it underscores the critical importance of carefully reviewing the entire Franchise Agreement and ensuring that all material terms and conditions are included in the written contract. It also means a franchisee cannot rely on verbal assurances or marketing materials if those terms are not formalized in the agreement itself. Franchisees should seek legal counsel to review the Franchise Agreement before signing.